Microsoft WPC: 10 Issues Ballmer & Co. Must Address

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Microsoft seems to have finally gotten its act together in the smartphone space -- as far as offering a software platform (Windows Phone) that can compete with Apple's iPhone and Google Android. Last month Microsoft debuted Windows Phone 8 that's based on the same core technology as the Windows 8 PC and tablet operating system that's due out later this year.

But Microsoft's efforts to gain ground in the smartphone market are being hobbled by the financial struggles of Nokia, its chief handset manufacturer partner. Adding to Nokia's woes was Microsoft's announcement that owners of phones running Windows Phone 7.5 and earlier won't be able to upgrade to Windows Phone 8, a move that seriously handicaps Nokia's efforts to sell Windows Phone-based Lumia smartphones (left) in the short run.

Microsoft needs act now to maintain any Windows Phone momentum. There are reports it's developing its own phone, and there are rumors Microsoft (or another manufacturer such as Samsung) might move to buy Nokia.